The Japan Exchange Group (JPX) has ended months of speculation by announcing that Nasdaq OMX and the NTT DATA Corporation will develop its new derivatives trading system.
The newly merged exchange sparked interest in February by publically appealing for system development vendors to apply to build the system, set to be launched in 2016.
With a handful of major tech firms in the running, JPX has now confirmed that Nasdaq OMX and Japanese systems developer NTT Data have jointly won the bidding.
The exchange said the new platform will be “highly convenient and globally competitive”.
“Developing the next-generation derivatives trading system is an important supporting infrastructural initiative toward JPX's core strategy of expanding the derivatives market,” the exchange said in a statement.
“We believe that our constant efforts to increase our competitive edge and further enhance the reliability of our infrastructure will contribute to the realisation of a highly reliable and convenient market for investors, trading participants and other market users.”
The Osaka Securities Exchange (OSE) and Tokyo Stock Exchange (TSE) united under JPX at the beginning of 2013, however only launched their joint derivatives platform in March this year
The existing technology on the platform was the J-GATE trading system, which has experienced outages and glitches in the past.
JPX’s decision to upgrade the platform aligns with its ambitions to expand on a global scale through co-operating with other derivatives exchanges and increasing its product offering.
“We will fully utilise the latest in technology to arrive at a system that enhances the risk management functions and other aspects of our systems, and can accommodate commodities, OTC derivatives and other products that are not available on the current J-GATE trading system,” JPX added.
The bourse will start developing the new trading platform along with the chosen parties immediately.